Klondike Star initiated a full-scale Scoping Study for the Lone Star
Project as a management planning tool to guide and accelerate the
assessment of mineral potential, feasibility planning, environmental
assessment, permitting and mine development decision-making. It discusses
the economic viability of the Lone Star mineral deposit, provides a
baseline assessment of environmental and socio-economic considerations
(including the permitting process), along with a base case mine design. The
study identifies strategies for dealing with critical success factors such
as energy supply, and produces detailed capital and operating cost
estimates.

Three successive years of environmental monitoring already completed can
help to fast-track environmental assessment and permitting as decisions are
made to proceed.

"Through its comprehensive, proactive and holistic approach to mine
feasibility planning, Klondike Star believes it will cut years from the
environmental and socio-economic assessment, mine authorization and
permitting processes," stated Hans Boge, President.

The proposed project is an open pit hard rock, low grade, large-scale gold
mining and processing operation. It is anticipated that the open pit mine
would process approximately 27,000 tonnes per day of gold-bearing ore (in
addition to waste rock) over an expected mine life of 10 years. This ore
would come from one or more of several mineralized zones on the property.

A special focus was placed on the examination of options for reducing
energy costs and taking advantage of locally available renewable energy
resources, including small hydro and wind, through a northern appropriate,
lowest life-cycle cost design. Such measures reduce and stabilize operating
costs, thereby enhancing mine profitability.

The preliminary estimate of capital costs is in the range of $250 million
to $300 million (USD). A 24-hour per day mining operation for 330 days per
year would yield a projected amount of 271,000 ounces of gold per year,
assuming a head grade of about 1.0 g/t and a recovery rate of 92 per cent.

The technical model designed through the scoping study indicates the
target, a preferred reserve estimate for making a production decision, is
currently in the range of approximately 38.8 tonnes (42.75 tons) of
contained gold assuming a gold price of $700 oz (USD). Management is of the
opinion that about 25% of the target, identified by the Scoping Study as
the threshold for economic viability, has been identified.

Through patient, systematic mineral exploration, complemented by rigorous
geological research -- including a Company-funded independent geological
investigation of the entire Klondike gold-producing region by the
internationally recognized University of British Columbia Mineral Deposit
Research Unit (MDRU) -- Klondike Star believes there has been a major
breakthrough in the understanding of Klondike geology, in locating the
sources of gold and in assessing the scale of mineralization. The company
holds all the key ground within the boundaries of the 135 km2/52 mi2
property.

Based on the consolidated analysis of structural geology of the area,
previous and exploration results from seven programs (1986 - 2007),
including the drilling, bulk sampling, geochemistry and geophysical
programs completed by Klondike Star 2005-2007, Company geologists are of
the opinion that mineralized material containing 253,000 troy oz has been
delineated in the Lone Star Zone (site of the original Lone Star Mine circa
1912-1914) with reasonable confidence in the exploration results. The
opinion is based on 14,730 m of drilling in 109 drill-holes. The estimate
does not include any of the mineralized material present at other major
exploration targets, such as the Buckland or Nugget Zones.

Klondike Star is a well-governed mineral exploration and development
enterprise with a solid portfolio of projects in Canada and Egypt. The
company has majority or 100% interests in 5 gold projects totaling about
280 km2/107.4 mi2 in the Yukon, located in the northwest corner of Canada
underlying the site of the world-renowned Klondike gold fields. Major
properties include the advanced-stage exploration Lone Star Gold Project
with a completed scoping study, the intermediate-stage Dominion Gold (and
silver) property; and, the pre-development Indian River Gold Project. The
mission is to explore, develop and operate new mines as socially
responsible, sustainable developments. Through its wholly owned Canadian
subsidiary, Klondike Star was awarded the right to explore and develop
gold, iron ore and other minerals on the expansive 1,245 km2/481 mi2
Oweinat concession in the Arab Republic of Egypt through a competitive,
international bidding process.

The statements in the press release that relate to the company's
expectations with regard to the future impact on the company's results from
new products or actions in development are forward-looking statements,
within the meaning of the Private Securities Litigation Reform Act of 1995.
The statements in this document may also contain "forward-looking
statements" within the meaning of Section 27A of the Securities Act of 1933
and Section 21E of the Securities Exchange Act of 1934. Since this
information may contain statements that involve risk and uncertainties and
are subject to change at any time, the company's actual results may differ
materially from expected results.